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The introduction of computerized information systems has greatly affected management control in many companies. Even a neighborhood shopkeeper may now use computers to control sales, billing, and other activities. In large companies, electronic data processing systems monitor entire projects and sets of operations.
Before the widespread use of computers, managers could not make full use of a large amount of valuable information about a company's activities. The information either reached managers too late or was too late to be used. Today,managers are facing plenty of data processing and information instruments. In place of a few financial controls, managers can depend on computerbased information systems to control activities in every area of their company. On any kinds of performance measures, the information provided by these systems helps managers compare standards with actual results, find out problems, and take corrective action before it is too late to make changes.
Now, there are about 220 million microcomputers in use in the United States—9 for every 10 citizens. It is estimated that by 2016, 90 percent of American managers will be using some sort of electronic workstation. In order for managers to be sure that the computerbased information they are receiving is accurate, they need to understand how computers work. Although in most cases they do not need to learn how to program computers, managers should understand clearly how computerized information systems work, how they are developed, their limitations and costs, and the manner in which information systems may be used. Such an understanding is not difficult to achieve.
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